Statement of Charles D. Ferris, Chairman, Federal Communications Commission, on H.R. 13015, a Bill to Replace the Communications Act of 1934 with the "Communications Act of 1978" before the subcommittee on Communications of the House Committee on Interstate & Foreign Commerce, July 18, 1978.

Ferris, Charles D.

H.R. 13015, the proposed revision of the Communications Act of 1934, is consistent in many aspects with Federal Communications Commission (FCC) trends toward greater reliance on marketplace forces than on regulation, but some portions of the bill should be reexamined before the final rewrite. First, the new bill would shift from a "public interest, convenience, and necessity" standard for policy making to one emphasizing the goal of regulating "to the extent marketplace forces are deficient." However, the bill should address more specifically when and what regulatory discretion is conferred on the FCC to deal with imperfections in certain markets. Second, H.R. 13015 proposes to shift spectrum allocation and policy making powers to a single Executive Branch administrator, a move that could seriously erode mechanisms created by Congress to insulate broadcasting from government control. Third, the bill precludes federal regulation of cable television but ignores potential state regulation that might frustrate the development of the benefits of competition. Finally, H.R. 13015 provides for public participation in communications regulation and policy making but should go even further by providing for reimbursement of expenses incurred by the public in directly participating in FCC proceedings. (GW)